What is a Credit Bureau?

By Jocelyn Black Hodes, DailyWorth's Resident Financial Advisor

June 21, 2013

Also referred to as a "consumer reporting agency," a credit bureau collects and sells information about the creditworthiness of individuals. A credit bureau consider's a person's spending habits and history and assigns them a credit score that can change over time. Credit bureaus do not have the authority to grant or deny credit, but will sell a credit report to creditors deciding whether or not to extend credit to prospective applicants. The three main credit bureaus for the U.S. are Experian, TransUnion and Equifax.